what happens to the net public debt if the federal government operates next year with a : budget deficit, balanced budget, budget surplus

The federal debt increases each year due to interest costs.

So, if there were a budget surplus GREATER than the interest costs, the debt will go down. Otherwise, the debt keeps increasing.

Some will argue this is wrong, one should only consider "real, non inflated" costs. I am not so certain that is much more than smoke and mirrors.

The net public debt refers to the total debt owed by the federal government to its creditors, such as individuals, businesses, and other countries. It is important to note that the net public debt is accumulated over time, as the government borrows money to finance its operations and expenditures.

Now, let's discuss how the net public debt is affected by different scenarios regarding the federal government's budget:

1. Budget Deficit: A budget deficit occurs when the government's expenditures exceed its revenues (taxes, fees, etc.). In this scenario, the government needs to borrow money to cover the shortfall. This borrowing increases the net public debt because the government accumulates more debt to finance its operations.

2. Balanced Budget: A balanced budget happens when the government's revenues match its expenditures. In this case, the government does not need to borrow money, and the net public debt remains unchanged. However, it's important to note that if the government has an existing net public debt, it will continue to incur interest payments on that debt, even with a balanced budget.

3. Budget Surplus: A budget surplus occurs when the government's revenues exceed its expenditures. In this situation, the government has extra funds and can use them to repay its outstanding debt. By reducing its debt, the government decreases the net public debt.

In summary, a budget deficit increases the net public debt, a balanced budget keeps it unchanged, and a budget surplus reduces the net public debt. It is essential to monitor these budgetary situations to understand their impact on the overall debt level of the federal government.